Marine Insurance Terms and Abbreviations

This is a term most used with marine corgo insurance policies. In order for the insured to be sure that the insured values are for an adequate amount, it is important to understand the meaning of these terms:

General AverageThis type of loss is deliberate -- it is incurred by the master of the vessel, usually including jettison of some cargo, or incurring towing and/or salvage charges in order to save the ship and cargo from a threatened peril. These costs, called general average sacrifices, are proportioned among all of the parties to the marine adventure, including the various owners of the cargo and the vessel owner.

There are four frequently used average clauses:FPA AC (American Conditions)Free of particular average (partial loss) unless caused by stranding, sinking, burning, or collision with another vessel. This limits recovery on partial losses to those directly resulting from these perils. This is the most limited average clause in general use today.

FPA EC (English Conditions) This is similar to the FPAAC Clause except that it is not necessary that the actual damage to cargo be a direct result of one of the specified perils, but only that one of the perils has occurred during the voyage and cargo is subsequently damaged by another peril of the sea such as heavy weather.

WITH AVERAGE This gives protection for partial loss from perils of the sea if the partial loss amounts to a certain percentage (usually 3%) of the insured value. A common clause reads "Subject to particular average if amounting to 3%, each case or shipping package separately insured." The percentage is called a franchise it is not a deductible percentage, but is the amount the claim must reach before the partial loss from a peril insured against is paid. The franchise is not applied if the vessel is involved in a fire, stranding, sinking, burning, or a collision, nor is it applied in general average losses.

AVERAGE, IRRESPECTIVE OF PERCENTAGE All partial losses due to perils covered in the basic Marine Perils Clause are fully recoverable regardless of percentage.

ABBREVIATIONS and TERMS:

Following is a list of common abbreviations used in maritime commerce. Some are used frequently, but most have fallen out of use:

A.B.S. American Bureau of Shipping A.C. Account, American Conditions A.C.W.R.R.E. American Cargo War Risks Reinsurance Exchange Ad Valorem - According to value A.G.W.I. Atlantic Gulf and West Indies A.H.F. American Hull Form A.H.I.S. American Hull Insurance Syndicate A.I.M.A. As interest may appear A.I.T.H. American Institute Time Clauses (Hulls) A.O.A. Any one accident A.O.B. Any one bottom A.O.L. Any one loss or Any one location A.O.V. Any one vessel A.P. Additional Premium A.P.L. As per list (Lloyd's Shipping Index) A.R. All Risks A.T.C. Automatic Termination Clause (War Risks) Aux - Fitted with auxiliary engine AWB Airway Bill

BDI Both days inclusive B.I. Business Interruption or Bodily Injury B.L. or B/L Bill of Lading B.O.V. Basis of Valuation B.D.I. Both days inclusive BDLS Bundles B.N.A. British North America B.O.C. Breach of Contract, Bulk Oil Clauses

N.A. Nett Absolutely m- no deductions from gross premium N.C.A.D. Notice of Cancellation at Anniversary Date N.C.R. No Claim return N.D. Non-Delivery, No Discount N.E. Not Exceeding, North East N.M. Non-Marine N.N.H. Not North of Hatteras N.P. Nett Premium, Named Perils N.R.A.D. or N.R.A.L. No Risk after Discharge / Landing N.R.T.O. R. No risk attached until on Rail N.R.T.W.B. No risk attached until Waterbourne N.R.L. Nett Retained Line N.U.R. Not Under Repair

TB Twisting Bending T.C.H. Time Charter Hire T. or C.T.L. Total or Constructive Total Loss T.C.A. Comp Total or Constructive or Arranged or Compromised T.L.V.O. Total Loss of Vessel Only T.P.L. Third Party Liability T.P. & N.D. Theft, Pilferage and Non-Delivery T.O.R. Time on Risk T.S. Transhipment T.T.F.C. Timber Trade Federation Clauses

U.C.B. Unless Caused By (the vessel being stranded, sunk, burnt, on fire or in collision) U.D. Under Deck U.E.P. Unearned Premium U.K.C. (B/H) United Kingdom and/or Continent of Europe Bordeau - Hamburg range. U.N.L. Ultimate Nett Loss U.R. Under Repair U.S. Ad. (Pac.) United States Atlantic (Pacific) USL&HWCA US Longshoremen's and Harborworkers Compensation Act U.S.N.H. United States North of Hatteras U.S.S.A. United States Salvage Association

W.A. With Average W.B.S. Without Benefit of Salvage W.C. West Coast W.C.A. Workmen's Compensation Act W.C.S.A. West Coast of South America W.D.F. Wireless Direction Finder W.E.F. With Effect From W.O. Washing Overboard W.P. Without Prejudice W.P.A. With Particular Average W.R.O. War Risks Only W.W. Worldwide